Khandker Sadia Arafin Senior Assistant Secretary Cabinet Division Concept of Government Performance Management System (GPMS)

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Are Governments under pressure ? 3

4 Public Enterprises have delivered what was expected from them Public Enterprises have delivered what was expected from them Reduce Quantity of Government Reduce Quantity of Government Privatization Increase Quality of Government Increase Quality of Government Performance Contracts (PCs) Performance Contracts (PCs)

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Performance Management Coined by Dr. Aubrey Daniels in the late 1970s. Management of both behavior and results, two critical elements of what is known as performance PM is a process by which organizations align their resources, systems and employees to strategic objectives and priorities. It includes activities which ensure that goals are consistently being met in an effective and efficient manner. It consists of 3 primary elements- measurement, feedback and positive reinforcement. 6

Performance Management 7 Performance = Capacity x Commitment Competencies x Resources x Opportunities Knowledge Skills Behaviors Personal Attributes

Performance Contract 8 It is an agreement between two parties that clearly specifies their mutual performance obligations. A performance agreement is a method of establishing expectations and accountability for meeting a set standard of execution excellence, and the consequences for not meeting them. Two or more parties agree on the actions the performer will execute and agree on the expected results from executing those actions. Now a days, it is a widely used tool for performance management in many countries.

9  It can be also discussed by the following steps–  Planning  Monitoring  Developing  Rating; and  Rewarding employee performance.  It is largely participatory and goal-oriented process of managing and supervising at work, in their task team or groups. PM: Concept and Context

Features Of PM10 Aligned with organizational culture and context. Linked to career planning, succession planning and training and development. Continuous process of monitoring and feedback.  Involves effective use of technology specially for monitoring and feedback.  Emphasizes on training to managers for their own development as well as to work as coach.  A dynamic system which also work in team.

Schematic Diagram of PM 11

PMS aims to integrate organizational activities across various managerial levels and functions (Sinclair & Zairi, 1995). PMS can be examined at two different levels (Neely, Gregory & Platts, 2005): (1) the individual performance measures (EPMS) (2) the set of performance measures – PMS as an entity (OPMS) 12 Performance Management System (PMS)

Why Performance Contracts? To Prevent confusion due to multiplicity of objectives vicious cycle of the “NOT ME” syndrome To Improve correlation between planning and implementation coordination between various government agencies To create benchmark competition among public agencies and enterprises an enabling public policy environment for other downstream reforms a “fair” and “accurate” impression about public enterprise performance 13

14 Emergence of Globalization and Changing Role of State Promoting Good GovernancePolitical PerspectivePrivate Sector Development : Donor’s Community, Civil Society Organizations and NGOs:

Significance of PM15 As mentioned by Osborne and Gaebler – What gets measured gets done If you don’t measure results, you can’t tell success from failure If you can’t see success, you can’t reward it If you can’t reward success, you are probably rewarding failure If you can’t see success, you can’t learn from it If you can’t recognize failure, you can’t correct it If you can demonstrate results, you can win public support.

16 Performance Agreement Contratos de Rendimientos (Performance Contracts ) Compromiso de Resultados (Commitment to Results) Contrat du Plan (Contract Plan) Contrats de Program (Contrats Program) Framework Agreement Memorandum of Understanding Purchase Agreement Results Framework Documents Alternative names for a Performance Contract

17 GPMS in Different Countries AustraliaPerformance Agreement BhutanPerformance Agreement BrazilResult Agreement CanadaPerformance Contract DenmarkContract FranceContract IndiaResult Framework Document

Performance Contracting Parties Principal Vs Agent Government-Ministry/Division Minister-Secretary of Division/Ministry Secretary- Agency Chief Minister-Agency Chief Agency Chief-Subordinate unit/ officials Between two government departments 18

PM Cycle 19 DEVELOP PERFORMANCE AGREEMENT role definition identify objectives identify competencies improve performance develop personnel ACT carry out role implement performance improvement plan implement personal development plan MANAGE PERFORMANCE monitor performance provide continuous feedback provide coaching deal with under-performers REVIEW PERFORMANCE dialogue and feedback agree strengths and weaknesses work on the weaknesses to improve build on strengths – “you are particularly strong in this area – how can you make even greater use of this?”

Performance Improvement System Performance contracting system has three parts Performance Information System Performance Evaluation System Performance Incentive System Quite often Performance Information System and Incentive System is merged into Performance Evaluation System 20

Performance Management in Bangladesh Decision of coordination meeting ( ) of PMO First Meeting on presided over by Senior Secretary, PMO Agencies of the PMO consult their organizational vision, mission, objectives and functions. In line with those they prepare the results indicators and the targets. Workshops on GPMS organized in June 2014 and Nov Ministries/Division prepare the results indicators and the targets. Signing Annual Performance Agreement in

Importance of PM in Bangladesh Performance management is recommended in the PARC report (2000) Performance Management is part of National Integrity Strategy (NIS) action plans Development Partners emphasize PM for enhanced productivity It is an agenda item of governance best practices in SAARC countries 22

Purposes of Annual Performance Agreement (APA) 23 Main purposes of introducing Annual Performance Agreement are: (a) moving the focus of the ministry from process-orientation to result-orientation, and (b) providing an objective and fair basis to evaluate overall performance of the ministry/division at the end of the year.

APA: A Tool for Improving Performance 24 The Annual Performance Agreement seeks to address three basic questions: a) What are ministry’s main objectives for the year? b) What activities are proposed by the ministry to achieve these objectives? c) How would someone know at the end of the year the degree of progress made in implementing these activities?

Model used in APA 25 Management by Objective (MBO) A management system in which the objectives of an organization are agreed upon so that management and employees understand a common way forward.management systemobjectivesmanagementemployeescommon Balanced Score Card (BSC) The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.strategic planning and management system

Overview of the Performance of the Ministry/Division Preamble Section 1: Ministry’s / Division’s Vision, Mission, Strategic Objectives and Functions Section 2: Outcomes of the Ministry/Division Section 3: Strategic Objectives, Priorities, Activities, Performance Indicators and Targets. Annex-1: Acronyms Annex-2: Description of the Performance Indicators, Implementing Department/Agencies and Measurement Methodology Annex-3: Specific Performance Requirements from other Ministries/Divisions Contents of APA 26

পারফরমেন্স কন্ট্রাক্টিংয়ের ধাপসমুহ সংশ্লিষ্ট আইন, বিধিমালা, নীতিমালা, পরিকল্পনা দলিল, বাজেট ডকুমেন্টের উপর ভিত্তি করে সংস্থার ভিশন, মিশন, উদ্দেশ্য ( প্যারামিটার ) নির্ধারণ করা ; সংস্থার কার্যক্রম (Functions) চিহ্নিত করা ; ২ টি পক্ষের মধ্যে আলোচনা ক্রমে নির্ধারিত বছরের জন্য বাস্তবায়নযোগ্য উদ্দেশ্যসমূহকে গুরুত্বের (priority) ক্রমানুসারে সাজানো ; উদ্দেশ্যসমূহ বাস্তবায়নের জন্য গুরুত্বপূর্ণ কাজগুলো নির্ণয় করা ; প্যারামিটার অর্জনের জন্য আনুপাতিক মান /Weight প্রদান করা ; প্যারামিটার / উদ্দেশ্য / প্রতিটি কাজের (action) জন্য Key Performance Indicators বা KPI নির্ধারণ করা ; 27

পারফরমেন্স কন্ট্রাক্টিংয়ের ধাপসমুহ ( ২ ) প্রতিটি কাজ পরিমাপের একক (unit) নির্ণয় করা ; Evaluation Criteria value নির্ধারণ করা ; নির্ধারিত বছরের জন্য প্রতিটি Key Performance Indicator বা KPI- এর সর্বোচচ লক্ষ্যমাত্রা নির্ধারণ করা ; নির্ধারিত বছরের বিকল্প লক্ষ্যমাত্রা সমূহ নির্ধারণ করা ; ইনসেনটিভ / রিওয়ার্ড Criteria নির্ধারণ করা ; সমঝোতা স্মারক / পারফরমেন্স কন্ট্রাক্ট স্বাক্ষর করা ; সমঝোতা / চুক্তি বাস্তবায়ন অগ্রগতি ষান্মাসিক মনিটরিং করা ; বার্ষিক ভিত্তিতে পারফরমেন্স ইভ্যালুয়েশন করা ; ইভ্যালুয়েশনের ভিত্তিতে রিওয়ার্ড / স্বীকৃতিদান 28

APA Preparation and Signing Process29

Significance of PM 30 Performance Management Revenues for services Demand for Social Services

Monitoring Arrangement 31  Actual achievements against performance targets are monitored by the Budget Management Committee (BMC) on a quarterly basis.  After six months the achievements of each Ministry/ Division against the performance targets will be reported to the Cabinet Division.

Evaluation of APA 32  At the end of the year, all Ministries/Divisions review and prepare a Performance Evaluation Report listing the achievements against the agreed results  Performance Evaluation Reports will be reviewed by the TCGP  TCGP will submit the Performance Evaluation Reports to NCGP  NCGP will examine Performance Evaluation Reports and submit the consolidated report to the Honorable Prime Minister.

Challenges 33  Weaknesses in developing Strategic Objectives, Activities and Performance Indicators  Absence of a strong database  Soft targeting  Lack of clear monitoring and evaluation framework  Moving the focus of the ministry from process-orientation to result-orientation  Establishing linkage between the performance of the organizations and performance of the personnel  Providing appropriate incentives for better performance.

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Conclusion35  With the effective implementation of the system the government will be able to achieve its goal described in the perspective plan as well as in the Five Year Plans.  It will also help to ensure better governance with the implementation of mandatory strategic objectives mentioned in the APA of each ministry/division.

Thank you 36